THE Bangko Sentral ng Pilipinas (BSP) has released the implementing rules for Republic Act 12010, also known as the Anti-Financial Account Scamming Act (AFASA), a landmark law designed to curb financial scams, protect consumers, and strengthen trust in the financial system.
The law, signed by President Ferdinand R. Marcos, Jr. in July 2024, is now in full effect with the issuance of these implementing rules, which the BSP led in drafting in coordination with relevant stakeholders.
“The issuance of AFASA’s implementing rules marks a milestone in our fight against cybercrime. Beyond serving as a powerful tool against evolving financial scams, these rules also enhance consumer protection and boost confidence in the domestic financial system,” said BSP Gov. Eli M. Remolona Jr. in a statement.
The BSP has issued three key circulars to put AFASA into action. First, the IT risk management regulations which require financial institutions (BSIs) to beef up their fraud prevention, security measures and consumer protection tools to stop unauthorized transactions.
Second, rules on financial account inquiry and information sharing, which give the BSP authority to investigate financial accounts linked to scams, while carefully balancing privacy and law enforcement needs. The BSP can share this data with other authorities.
Third, regulations on temporary holding of disputed funds and coordinated verification process, which mandate financial institutions to set up systems to track disputed transactions in near real-time. They can temporarily hold disputed funds (up to 30 days) and return them to scam victims when appropriate.
AFASA specifically aims to prevent the misuse of financial accounts in various forms of fraud, including phishing and vishing. It also defines and penalizes social engineering schemes, money muling activities and related offenses, extending coverage to technologically advanced crimes previously not addressed by existing cybercrime laws in the Philippines.
The BSP urges the public to remain vigilant, safeguard their financial credentials and promptly report any suspicious transactions to BSIs or appropriate authorities. / KOC